Public sector lender Bank of Baroda (BoB) on Wednesday raised its marginal cost of funds-based lending rate (MCLR) by five basis points (bps) across tenures.
It seems that the bank took the decision following the footsteps of its larger rivals State Bank of India (SBI) and ICICI Bank.
BoB’s one-year MCLR is now reported to be at 8.55 percent. It’s MCLRs for other tenures range between 8.05 percent and 8.4 percent. The revised rates will be effective from Friday.
Earlier this week, India’s largest lender by assets the SBI raised its one-year MCLR by 20 bps for the month of September. The one-year MCLR at SBI is now at 8.45 percent. Private lender ICICI Bank also elevated the corresponding rate by 15 bps to 8.55 percent.
According to the experts, the aggressive rate raise by banks indicate the impact of inflation in their cost of funds as well as the ongoing menace of Non-Performing Assets (NPAs) in banks.